Tuesday, Sep 20, 2005 at 15:31
Yup - maybe give them a little credit once in a while.
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Calm down fellas.... as a government, they really do listen.... maybe give them some credit for that.
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Petrol excise increase 'abandoned'
From: AAP
September 20, 2005
A PLANNED increase in the excise on petrol has been abandoned, Treasurer Peter Costello said today.
Mr Costello said the increase, which would have added 0.06 cents a litre to the cost of all petrol, would now be financed directly out of the budget.
The rise, which was to have taken effect from January 1 next year, was intended to fund the introduction of cleaner fuels.
"Given current market conditions the government has decided there will be no increase in excise to fund this incentive," Mr Costello said.
"The incentive for low sulphur premium unleaded petrol will be funded from the budget.
"Excise will remain at 38.143 cents, the same rate as was fixed when indexation was abolished in 2001."
The government has been under pressure over climbing oil prices and the government's excise and GST on petrol.
Earlier today, Prime Minister John Howard signalled the government may change its position on the excise increase.
The increase was agreed upon in 2003 to help cover the cost of the introduction of low sulphur fuel.
Mr Costello said the government would continue to review the arrangements covering the introduction of low sulphur fuels.
"New, lower sulphur, mandatory standards will apply to diesel from 1 January 2009," he said.
"Incentives to take up these standards from 1 January 2007 will be reviewed in the period prior to implementation to ensure it aligns with new fuel standards and market conditions."
AND
Govt backs down on fuel tax
From: AAP
September 20, 2005
Petrol prices / AFP
Bowser bite ... Cabinet is meeting to discuss the excise cut / AFP
THE Federal Government has backed down on plans to increase fuel excise from January 1 next year.
Treasurer Peter Costello said today there would be no hike despite a statement made in mid-2003 that fuel excise, currently capped at 38c a litre, would increase from January 1, 2006.
Mr Costello said the 0.06 increase will now be financed directly out of the Budget.
The rise in fuel tax was supposed to have funded payments to oil companies to encourage them to produce more environmentally-friendly fuels that were lower in sulphur.
But the prospect of an excise hike raised the ire of motoring groups and drivers across Australia, as families struggle with already high petrol prices.
Earlier today, Prime Minister John Howard signalled the Government may change its position when he said the increase was never set in stone.
"That was an announcement that was made a couple of years ago in an entirely different environment and the announcement said that the desirability and need for it would be reviewed before it came into operation," Mr Howard said.
"I can assure you and I can assure the Australian public that it is being reviewed and is being reviewed very soon, and we may have something further to say about that, even later today."
Federal Opposition leader Kim Beazley said the Government would have been "out of touch" if it went ahead with the increase.
Earlier today, Australia's largest motoring organisation said Government moves to lift the excise on fuel would hurt cash-strapped motorists even further.
NRMA motoring
services president Alan Evans said that as
well as breaking its commitment, any rise in fuel excise was particularly concerning given recent record petrol price hikes.
"They agreed in 2001 to cap excise and I think motorists will be angry on two counts," Mr Evans said on Channel 9.
"One, that the Government's going back on that undertaking but secondly that money's going out of their pockets to oil companies who in the last few weeks ... have increased their margins threefold."
Mr Evans said the changes would have added around one cent a litre to the price paid by motorists once the GST was added.
The scheduled increase was first announced when petrol was just 90c a litre - motorists are now being paying more than $1.30 a litre.
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